The template calculates the Actual Rate of Return using the following formula: = FV(Rate of Return – Inflation Rate), Period, 0, -Investment Amount, 0) Providing the above details, the template will calculate the Inflation-adjusted return and also the actual rate of return.Īdjusted-Inflation Return is calculated using the following formula: This section is helpful to investors/businessmen making a single investment in a particular project for a specific period with an expected rate of return. It calculates the future value and the actual rate of returns after adjusting the rate of return with the inflation rate. Inflation-Adjusted Future Value – Present Value Inflation-Adjusted Return Calculator For Single Deposit Present Value X (1 + Expected Inflation Rate) ^ Periodįurthermore, the template also displays the deflated value of money in the given period. The template applies the following formula to calculate the future value: Providing these details, the template automatically calculates the amount of money you will need in the future after the specified period. This template consists of 3 Calculators: Future Value With Inflation, Inflation-Adjusted Return For Single Deposit and Inflation-Adjusted Return For Multiple Deposits. Contents of Future Value Calculator Excel Template Let us understand the contents of the template and how to use it. To simplify the process, we have created a simple and easy Future Value Calculator that you can use to calculate the deflated future value of money and inflation-adjusted return for your investments.Ĭlick here to download the Future Value Calculator Excel Template.Īdditionally, you can also download other financial analysis templates like NPV And XIRR Calculator, CAGR Calculator, ROCE Calculator ROE Calculator Portfolio Analysis With BSE Bhav Copy, Income Tax Calculator FY 2018-19 and Loan Amortization Template from our website. It helps you define the amount you need to save for your retirement to maintain the same lifestyle during the retirement period. Inflation-Adjusted return is also helpful to individuals for planning their retirement. The main reason behind doing this is that the return that investor gets after the return period based on a return rate will have less purchasing power than that of present value.Īdjusting the return according to the expected inflation rate gives you a brief idea of purchasing power at the completion of the project. Smart investors always take into consideration the inflation rate while investing in bigger projects. In simple terms, it is the devaluation of money which decreases the purchasing power. It results in a fall in the purchasing value of money. In economics, the inflation rate is the rate at which prices increase over time. You need to provide only 3 arguments: Investment amount, period and rate of return. Generally, you can easily calculate the future value of an investment using FV Function in excel. Moreover, it calculates inflation-adjusted return for a single deposit as well as multiple deposits over a specific period.Īll you need to do is just enter a few details and it will automatically calculate it for you. Additionally, it calculates the deflated value of an investment over a specific period.
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